BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming December 12, 2023 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Capstone Green Energy Corporation (“Capstone” or the “Company”) (NASDAQ: CGRN; OTC: CGRNQ) securities between June 14, 2021 and September 22, 2023, inclusive (the “Class Period”).
Investors suffering losses on their Capstone investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
On August 15, 2023, after the closing of trading, the Company announced its inability to timely file a Form 10-Q due to an “ongoing review and investigations by the Audit Committee of financial reporting and other matters.” On this news, the Company’s stock price fell $0.05, or 5%, to close at $0.89 per share August 16, 2023, on unusually high trading volume. The Company’s stock price continued to fall the next trading session by $0.05, or 5%, to close at $0.84 per share on August 17, 2023.
Then, on August 18, 2023, after trading hours, the Company announced it had entered into a Fifth Amendment to its Amended and Restated Note Purchase Agreement among the Company, Goldman Sachs Specialty Lending Group, L.P. and a purchaser party. Capstone also reported receipt of a notice from the NASDAQ exchange that the Company was not in compliance with listing requirements due to its failure to file periodic financial reports. On this news, the Company’s stock price fell $0.26, or 30%, to close at $0.58 per share on August 21, 2023, on unusually high trading volume.
Then, on September 22, 2023, after trading hours, the Company disclosed that certain financial statements could no longer be relied upon “as a result of apparent errors primarily related to revenue recognition associated with bill and hold transactions that were identified in the course a review by the Audit Committee[.]” The Company disclosed there were “numerous instances where bill and hold transactions did not appear to meet the requirements for revenue recognition under GAAP.”
Then, on September 28, 2023, the Company announced it had filed for Chapter 11 bankruptcy. On this news, the Company’s stock price fell $0.10, or 17%, to close at $0.50 per share on September 28, 2023.
Then, on October 4, 2023, after trading hours, it was announced that the company would be delisted, and the ticker symbol changed from CGRN to CGRNQ.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company had engaged in “bill and hold transactions” with customers; (2) that these transactions were not reported pursuant to generally accepted accounting principles (“GAAP”); (3) that, “as a result of apparent errors primarily related to revenue recognition associated with bill and hold transactions” the Company lacked a reasonable basis to report certain financial results and was reasonably likely to restate its financial statements; and (4) that, as a result of the foregoing, Defendant’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Capstone securities during the Class Period, you may move the Court no later than December 12, 2023 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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